Revenue Managers Are Heroes
If you asked my 5-year-old son to name 3 heroes, here’s what he’d tell you:
- Mama (he’s a sweet little guy)
Before March of 2020, most adults would have probably given you a similar list – until COVID came along and changed things. Suddenly, a new kind of “everyday hero” was being celebrated:
- Essential frontline workers
But you likely didn’t hear “revenue managers” included on that list… until now.
Not Our First Rodeo
The hospitality industry’s post-pandemic recovery was a hot topic at a conference I recently attended, and many comparisons were drawn between the current recovery period and that of the Great Financial Crisis. It took ADR almost 10 years to recover after that crisis. Today, thankfully, some markets have already bounced back, while others are booming to higher than pre-pandemic levels.
So, what was different this time? How have we bounced back so quickly?
We’ve never experienced a global pandemic like this in our lifetime, and there is no playbook to work from. However, the industry does have some hard-won learnings from prior economic downturns.
Revenue Managers to the Rescue
During the early days of the pandemic, “there’s no revenue to manage” was a frequent refrain. Budgets were cut, staff was lost, and everyone was trying to do more with much, much less. Some bought into the myth that when demand is especially low, revenue management isn’t a worthwhile practice, and slashing rates is the only way to generate any business.
This is where RMs stepped in and saved the day. They understood something about this complex environment that the computers could not: that dropping rates was not going to stimulate demand during a global health crisis.
Because seasoned RMs stood their ground and maintained the critical practice of revenue management even when demand was at an all-time low, we are now reaping the benefits. They have helped to control ADR recovery faster than ever before.
I have heard endless praise for revenue managers holding rates during that time – and rightfully so!
Even Heroes Need Help
While the industry is beginning to recover, these RM heroes are still being asked to do more with less, particularly from a staffing perspective. Teams that were reduced due to budget constraints still aren’t fully staffed, due in part to the talent exodus the hospitality industry is experiencing.
So, we need to ask ourselves – do RMs have the tools they need to be set up for success in today’s "new normal?"
Think about our other everyday heroes: do we expect doctors and nurses to cure ailments without medicine and diagnostic testing? Or do we think teachers can successfully educate their students without the use of crucial school supplies?
And what about my son’s heroes? Spiderman can only get so far without his web. And who is Superman without his cape?
So, let’s truly honor our heroes: the revenue managers. Make sure they have the tools they need to succeed – tools that enable them to continue to do more with less. In order to set them, and our industry, up for success, we must reimagine the way we all work and how we can best support them in this “new normal.”
Imagine: An RMS Built for Today’s Revenue Management
During the heart of the pandemic, Revenue Analytics launched a new product based on the belief that your RMS should make your life easier, not harder. Instead of another fancy excel add-on or a system that requires endless button-pushing and overrides, imagine a system where:
- All the properties you manage are on a single screen. No filtering. No flipping back and forth. Your entire portfolio, on one screen, pre-prioritized so that you know where you should focus your attention.
- You don’t have to battle against all-or-nothing automation. Automation is a highly effective way to do more with less, but not if the system is forcing your hand. If you don’t trust the decisions the system is making, you’ll end up spending all your time on overrides. The right tool should be built around smart automation that ultimately puts you in control and frees up more of your time to manage true exceptions.
- The question of “so what?” is easily answered. Many RM solutions overwhelm you with data that you aren’t sure how to interpret – leaving you wondering, “so what?”. A smart RMS should distill that information into actionable pieces of data that easily answer the “so what?” of pricing.
This all sounds dreamy, doesn’t it? Well, I have good news for you: what once was a dream is now a reality. N2Pricing™ RMS was built with modern revenue management in mind.
Enjoy smart automation controls, a workflow optimized for multi-property, and an accurate forecast built on powerful analytics, all without the endless button pushing and integration issues of legacy RMSs. Rate recommendations are paired with the “Big 3” data points – Demand Forecast, Competitive Price Position, and Price Sensitivity – arming you with all the information you need to make effective pricing decisions.
I am incredibly proud of this product and the work my team has put into building it. It’s exciting to see how N2Pricing can truly make people’s jobs easier, especially after all we’ve been through in the last few years.
Thank the Revenue Managers in Your Life
If you are a revenue manger – THANK YOU! Thank you for your resiliency, determination, and hard work. This recovery wouldn’t have been possible without you.
If you’re not in revenue management, please join me in applauding these heroes. Reach out to them. Thank them for what they’ve done for our industry.
And, if you have any say in it, help get them the tools they need to continue to succeed.
As the industry continues to recover and the world continues to evolve, we must ask ourselves: is there a better way? An easier way? How can we best support RMs and free up their time so they can be the strategic, commercial leaders that the business needs?